Levelized Cost of Energy, LCoE, for offshore wind investments: a powerful metric, but with some pitfalls to look out for.
LCoE is a well-known measure for evaluating and comparing projects in the energy generation sector and incredibly insightful if done correctly.
However, there are also several potential pitfalls in its application that we often come across in the industry. Understanding this metric and its intended use can be challenging, and model outputs like this need proper supporting details to ensure they are understood correctly.
At Aegir Insights we have therefore published a white paper, putting together everything that you need to know about LCoE and potential pitfalls to look out for:
- Definition and LCoE fundamentals.
- Examples of where LCoE is a good measurement to be used and where it falls short.
- Showcasing different LCoE units, how major the differences can be, and which one we at Aegir recommend using.
Setting the standard for offshore wind
We believe that it is crucial to align on industry fundamentals to help steer more efficient investments, which is why we published this first white paper as part of our series “Setting the standard for offshore wind”.
Aegir’s clients can reach out to Sebastian Kæmpe Hansen for questions or to schedule a bespoke walk-through of the white paper.
If you want to learn more about Aegir Insights' intelligence offerings, please reach out to Matthew Delany.
Aegir Insights offshore wind intelligence
At Aegir Insights we leverage data science and deep industry experience to help renewable energy players make smarter decisions, faster.
Our expertise lies in contextualizing complex information through use of proprietary models developed in close cooperation with industry and academia. Going beyond data, Aegir Insights brings independent strategic insights based on our industry experience.